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HB 68

Leasehold interests added to prohibition against acquisition of ownership interests by certain individuals, governments, political parties in agricultural, forest and other real property; adds companies, individuals on U.S. Treasury sanctions lists to sanctions list prohibition; specifies overall pertinence to property in the state

2025 Regular Session Introduced by Scott Stadthagen

Alabama bill expands restrictions on foreign acquisition of agricultural land to include long-term leases and parties on U.S. sanctions lists, strengthening barriers against foreign property control.

Currently Indefinitely Postponed
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Bill Summary · HB 68

Legislative bill overview

HB 68 expands Alabama's existing restrictions on foreign ownership of agricultural and forest land by adding leasehold interests to the prohibition and incorporating entities and individuals on U.S. Treasury sanctions lists. The bill broadens the scope of what cannot be acquired by foreign governments, political parties, and now sanctioned parties to include long-term lease arrangements, not just direct ownership.

Why is this important

Agricultural land ownership restrictions are a recurring policy concern balancing national security interests with property rights and international trade relations. This bill specifically targets foreign actors already subject to U.S. economic sanctions, attempting to prevent circumvention of federal sanctions through state-level property leasing arrangements while protecting domestic agricultural interests.

Potential points of contention

  • Leasehold vs. ownership distinction: Adding leasehold interests significantly expands restrictions beyond traditional ownership concerns; lengthy agricultural leases can function similarly to ownership and may affect legitimate business operations or agricultural partnerships
  • Compliance complexity: Integrating U.S. Treasury sanctions lists (which change frequently) into state property law creates administrative burdens for title companies, sellers, and state agencies verifying eligibility at time of transaction
  • Constitutional/commerce concerns: State-level restrictions on property transactions may conflict with federal commerce powers or face legal challenges regarding equal protection and due process, particularly for sanctioned entities with appeal processes

Compiled from official sources — confirm details with the bill’s official record.

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